Though it has been just more than six years since recreational cannabis was approved in California by voters, many counties, municipalities and lawmakers are still grappling with adjusting to the new industry, and Sonoma County is no different.
The county's Board of Supervisors on Tuesday voted to change the tax on cultivation after much pushback from growers beset by what they called over-burdensome fees that left some with zero profits, sometimes even in the red.
Beginning in July, cannabis growers in Sonoma County's jurisdiction will be taxed based on their growing approaches and the size of their operations, with taxes for outdoor growers dropping and those for indoor growers going up. Outdoor grows will be taxed 75 cents per square foot, indoor cultivators will be taxed $12.50 per square foot, and grows with a mix of indoor and natural light will be taxed $3 per square foot. Estimated tax revenue would be about $1.4 million, according to the county.
The difference between indoor and outdoor growing, the county and some growers argued at the meeting, is that taxing at a square-foot rate penalizes outdoor farmers who must contend with the weather and other elements to make profits. Currently the county is also examining its cannabis land use provisions in an attempt to"expand, restrict or eliminate" some land uses and streamline the cannabis permitting process, a statement released from the county Tuesday said. A Comprehensive Cannabis Program Update Environmental Impact Report for the county is set to be reviewed in a public meeting on March 8.
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